Need for an Australian financial services licence

Offence title:

Need for an Australian financial services licence

Act:

911A Corporations Act

Offence:

(1)   A person who carries on a financial services business must hold an Australian Financial Services Licence (AFSL) covering the provision of the services.

Note 1: Also, a person must not provide a financial service contrary to a banning order or disqualification order under Division 8.

Note 2: Failure to comply with this subsection is an offence: s. 1311(1).

(2)   This subsection deals with exemptions from holding an AFSL.

(3)   This subsection provides further limitations on the application of the exemptions in ss. (2).

(4)   A person is not exempt under any paragraph of subsection (2) for a financial service they provide if the service is:

(a)   the operation of a registered scheme; or

(b)   a traditional trustee company service.

(5)   This subsection, and ss. (5A), provide further limitations on the application of the exemptions in ss. (2).

(5B) A person contravenes this subsection if the person contravenes subsection (1).

Note: This subsection is a civil penalty provision: s. 1317E

Penalty:

(1)   5 years imprisonment, 2,000 penalty units, or both;

Summary/Indictable/mixed:

Mixed

Jurisdiction:

Local, District or Supreme Court

How committed:

A person provides insurance advice without holding an AFSL or being an authorised representative of an AFSL holder.